Swing Trading is difficult because it is the ultimate case of a competitive market. You are competing against THOUSANDS of other experienced swing traders who are using profitable strategies and are disciplined traders.
If swing trading was really so easy to do and be profitable, everyone would be doing it and prices would move accordingly so it wouldn’t work anymore.
In the case of a “buy low, sell higher” swing trading strategy — you can try to come up with trading rules that reflect that.
For example, buying at a RSI low of 30 and selling at a RSI reading of 70 can be one option. In fact that is one of Jason Bond’s “Bread and Butter” trades.
Unfortunately just doing that blindly doesn’t necessarily lead to profitable trades and the long-term performance of such a strategy might be marginal at best. Most likely you would lose your shirt.
That’s because markets are close to being a random walk, so buying at what seems a low point doesn’t mean there will be a mean reversion and the stock will rally, it might be as likely to keep dropping in price.
And without being disciplined and taking your small loss, you end up with an “investment” that you refuse to sell and take the loss.
So that’s why you have other filters and rules to know whether or not you should take the trade.
Or you can just accept the fact that it will take too much to learn all the nuances and just ride an experienced swing trader’s coattails.
Make it easy on yourself by following and learning from a professional who knows how to profitably swing trade and help guide you to becoming a profitable trader.
Here are the two I use for most of my trades:
Regardless of which Stock Picking Service you use or if even if you choose to go it alone, please download my free eBook: “The 7 Habits of Millionaire Traders”
You can read all my reviews on stock picking services here:
If you have any questions feel free to contact me.
– Robert Walsh